Correlation Between Anglesey Mining and Fair Oaks
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining and Fair Oaks at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anglesey Mining and Fair Oaks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and Fair Oaks Income, you can compare the effects of market volatilities on Anglesey Mining and Fair Oaks and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Anglesey Mining with a short position of Fair Oaks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and Fair Oaks.
Diversification Opportunities for Anglesey Mining and Fair Oaks
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anglesey and Fair is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining and Fair Oaks Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Oaks Income and Anglesey Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Anglesey Mining are associated (or correlated) with Fair Oaks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Oaks Income has no effect on the direction of Anglesey Mining i.e., Anglesey Mining and Fair Oaks go up and down completely randomly.
Pair Corralation between Anglesey Mining and Fair Oaks
Assuming the 90 days trading horizon Anglesey Mining is expected to under-perform the Fair Oaks. In addition to that, Anglesey Mining is 6.71 times more volatile than Fair Oaks Income. It trades about 0.0 of its total potential returns per unit of risk. Fair Oaks Income is currently generating about 0.11 per unit of volatility. If you would invest 47.00 in Fair Oaks Income on September 19, 2024 and sell it today you would earn a total of 10.00 from holding Fair Oaks Income or generate 21.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglesey Mining vs. Fair Oaks Income
Performance |
| Timeline |
| Anglesey Mining |
| Fair Oaks Income |
Anglesey Mining and Fair Oaks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and Fair Oaks
The main advantage of trading using opposite Anglesey Mining and Fair Oaks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining position performs unexpectedly, Fair Oaks can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fair Oaks will offset losses from the drop in Fair Oaks' long position.| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Ferrexpo PLC | Anglesey Mining vs. Atalaya Mining |
| Fair Oaks vs. Infrastrutture Wireless Italiane | Fair Oaks vs. Take Two Interactive Software | Fair Oaks vs. Vitec Software Group | Fair Oaks vs. Extra Space Storage |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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